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When the file is already under the ceiling
If the original is at or under the megabytes you typed, the start is the beginning, the end is the end, and the frame height is auto, Tabceil does not re-encode. It offers that same file. Re-encoding a file that already fits would only make a different picture.
If you then set a shorter end, or a lower frame height, the page encodes, because you asked for a different file. The measured size is what you save.
1 MB on this page is 1,000,000 bytes. A file of 24,000,000 bytes is under a 25 MB ceiling. A file of 25,000,001 bytes is over.